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19. Heino Inc., hired you as a consultant to help them estimate their cost of capital. You have been provided with the following data: risk-free

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19. Heino Inc., hired you as a consultant to help them estimate their cost of capital. You have been provided with the following data: risk-free rate = 5%; market risk premium = 6.0%, and beta 1.1. Based on the CAPM approach, what is the cost of equity from retained earnings given a flotation cost of 10%? a. 10.50% b. 10.71% C. 10.88% d. 11.30% 11.60%

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